Budi N

Budi N

Budi Nugroho P.

 

13
September

 

On Wednesday, 12 September 2018, in Tangerang, Banten, based on the Extraordinary General Meeting of Shareholders, I Gusti Ngurah Askhara Danadiputra or Ari Askhara officially served as President Director of PT Garuda Indonesia, replacing Pahala N Mansury.

Throughout 2017, PT Garuda Indonesia suffered a loss worth US$213.4 million dollars, equivalent to Rp2.88 trillion. In 2016, Garuda managed to record a net profit worth US$9.4 million or around Rp126.9 billion. The losses during 2017 were due to increased spending by 13%, from US$3.7 billion to 4.25 billion dollars, mainly due to an increase in fuel costs by 25% from US$924 million to 1.15 billion dollars.

Ari Askhara has a target to reduce PT Garuda Indonesia's losses to less than US$ 100 million at the end of 2018 by closing the operating costs leakage gap, optimizing favorite routes, opening good economic value routes and improving employee performance. From 2013 to 2018, Askhara was a director of a number of companies, such as Director of Finance and Garuda Risk, and lastly in 2018, he served as President Director of PT Pelindo III.

Askhara will involve all employees and regulators in achieving the target. Part of his experience at Pelindo III will be applied on Garuda. One of them is the transformation of human capital. Because Garuda Indonesia is engaged in the service sector, employees’ happiness is very important so that service to passengers increases. Furthermore, he will attempt to increase revenue by creating new routes at several points of foreign tourist sources, and optimizing the old domestic routes compared to international ones.

To reduce operating costs and prevent inefficiency, there will be renegotiation of incoming aircraft leases, especially for narrow body and wide body existing flights in a bid to extend the lease period. So, the monthly rental fee will decrease by 10-20%.

Amid Rupiah’s worsening conditions and rising oil prices, the next step to be taken is redefining cost structure, changing and improving operational costs.

Along with other directors, such as Commercial Director -Pikri Ilham Kurniansyah, Director of Cargo and Business Development -M Iqbal, Operations Director Bambang -Adi Surya, Director of Finance and Risk Management -Fuad Rizal, HR Director -Heri Akhyat, Technical Director -I Wayan Susena and Service Director - Nicodemus P Lampe, Ari Askhara with the support of shareholders will try to realize the achievement of the target to reduce PT Garuda Indonesia's losses to below US$ 100 million by the end of 2018.

With the experience of leading various divisions in various companies along with the management of the new Garuda Indonesia, Ari Askhara's strong commitment is expected to become a reality, instead of writing on paper, with the support of various parties.

11
September

 

 

Today, September 11th. 2018, Radio Republik Indonesia –RRI commemorates its 73rd anniversary. Since its existence, RRI has provided invaluable contributions both in supporting the independence process, and filling the independence until today.

 

Then, the question is how does RRI keep up with current media developments that are required to more quickly disseminate information and reach more audiences with broadcast content that the community really needs?

To answer the question, Radio Republik Indonesia has 97 broadcasting stations consisting of 1 unit of A type, 30 units of B type, 34 units of C type, News Centre and Overseas Broadcast -Voice of Indonesia and 32 existing Production Studios.


As Information Safety Belt, during 2009 – 2010, RRI had established studios in border areas and remote areas, including in Entikong, Batam, Nunukan, Putusibaou, Malinau, Atambua, Ampana, Boven Digoel, Kaimana, Skow, Oksibil, Takengon, Sabang and Sampang. Broadcasts through these production studios are intended to enhance a sense of nationalism and provide balanced access to information for people in the border areas as well as in areas that previously could not receive RRI or blank-spot broadcasts.

 

In addition, RRI broadcasts can also be enjoyed via streaming or the internet. Even in 2018, RRI can be followed through RRINET, a visualized radio program where audiences can either listen or view broadcast content like a television broadcast.


Innovations in equipment and broadcast content as well as the development of human resource capabilities are a necessity in the times of development. What RRI is doing right now, especially for broadcast equipment and content is on the right track. But the existence of human resources, especially civil servants who are now getting fewer and fewer needs more serious attention. Regeneration and additional employees according to needs should also be a main priority.

 

Congratulation on the 73rd anniversary of Radio Republic Indonesia! Once On the Air, Forever !

06
September

 

The rupiah exchange rate against the United States dollar on Wednesday (05/09) continued to weaken. The average trade of interbank per US dollar was priced above Rp. 14,900.

The weakening of the exchange rate is not only experienced by the rupiah. The exchange rate of other developing countries also weakens, such as India weakening more than 10 percent, Brazil 20 percent, and  even, Turkey and Argentina reached more than 40 percent. The current rupiah weakening which reached 9.24 percent is still better than other developing countries such as India, Brazil but, the rupiah exchange rate looks more sluggish than the currencies of countries in Southeast Asia. The Philippine peso weakened to 6.99 percent, the Yuan reached 4.83 percent, the Korean Won reached 4.27 percent, the Malaysian Ringgit reached 2.23 percent, and the Singapore dollar reached 2.96.

The weakening of the rupiah exchange rate was largely influenced by negative sentiments both outside and within the country. The negative sentiments from outside such as the Federal Reserve's interest rate increase, the trade war between China and the United States, and the crisis that hit Turkey and Argentina. While negative sentiments from the country include foreign exchange purchases by corporations for large imports, and current account deficits. Indonesia's current account balance deficit is still in the range of three percent of Gross Domestic Product -GDP, affecting investor sentiment because foreign exchange reserves continue to be eroded to patch the deficit.

The Government and Bank Indonesia have made efforts to reduce rupiah depreciation. Bank Indonesia continues to be in the market to increase the volume of intervention both in the foreign exchange market and in the Government Securities market. All efforts of the government and Bank Indonesia have not been able to reduce the weakening of the rupiah.

Governor of Bank Indonesia –BI, Perry Warjiyo admitted on Tuesday (4/9/2018) that currently, the weakening of the rupiah is not natural because it does not reflect its fundamental value. He emphasized that the rupiah exchange rate which on Tuesday dropped to Rp. 14,900 per dollar is not reasonable and should not happen.

The question is whether there is a role for speculators in weakening the rupiah. The government has threatened to impose strict sanctions on speculators who have been trying out 'acting as speculators'. The Government’s threat to foreign exchange speculators, as stated by Minister of Finance, Sri Mulyani Indrawati and Coordinating Minister for the Economy, Darmin Nasution indicates that there are certainly speculators who are currently "speculating" the rupiah.

The government needs to prevent, and take action against them so as not to try to take advantage of this condition. The government along with Bank Indonesia and the Financial Services Authority –OJK must cooperate to prevent and crack down the speculators.

04
September

 

President Joko Widodo gathered his ministers and officials in the economic field to discuss the rupiah weakening. The meeting took place at the State Palace in Jakarta on Monday afternoon (3/8). During the meeting, President Joko Widodo asked his aides to explain to the public that the recent weakening of the rupiah against the US dollar was not worrying for the national economy. Chairman of the Financial Services Authority –OJK, Wimboh Santoso revealed this, when asked by reporters about President Joko Widodo's direction in the meeting.

Wimboh said that currently, OJK, Bank Indonesia and the government have prepared the steps to be taken in anticipating the weakening of the rupiah by strengthening exports to various countries. In addition, the government will also reduce imports of unnecessary goods. Quoting Bloomberg on Monday (3/9), the rupiah opened at Rp. 14,745 per US dollar; it was weakening compared to the previous trading closing figure of Rp. 14,710 per US dollar. If calculated from the beginning of the year, the rupiah weakened 9.03 percent.

What's interesting about Wimboh's statement is that the government plans to reduce the imports of unnecessary goods. According to the Central Statistics Agency (BPS), during January-July this year, the imports of consumer goods recorded $9.9 billion dollars, up 27.03 percent, compared to the same period last year. While at the same time, imports of raw or supporting materials rose 22.9 percent.

Considering that Indonesia is rich in natural resources, the reduction in the imports of unnecessary goods can refer to the import of raw or supporting materials. Strengthening the exchange rate of the US dollar against the rupiah can provide an opportunity for increasing use of local raw materials.

The price of local raw materials, which has been considered more expensive, may be equivalent or even cheaper compared to imported raw materials. The strengthening of the US dollar has the opportunity to make a comparison of local and imported raw material prices to adjust. Raw materials for the leather, plastic and chemical industries made domestically are a logical choice for businesses because they are bought with rupiah.

The strengthening of the US dollar has reduced the competitiveness of imported raw materials in terms of prices. This situation can be used as an opportunity for domestic producers to produce goods with cheaper local raw materials. Then, the community can have high purchasing power to buy goods in cheaper prices, compared to imported goods whose prices are affected by the strengthening of the US dollar. For the government, this will make efforts to reduce imports.